The UK's key inflation rate hit its highest for more than five years in September, driven up by increases in transport and food prices. The Consumer Prices Index (CPI) climbed to 3%, a level it last reached in April 2012, and up from 2.9% in August. The pick-up in inflation raises the likelihood of an increase in interest rates - currently 0.25% - next month.1 comment
Bank of England should hold off from raising interest rates next month, according to a forecasting body. Bank governor Mark Carney has said rates could go up in the relatively near term, with many analysts expecting a hike in November. However, the EY Item Club said such a move risked hurting the UK's fragile economic outlook.Add your comment!
Britain's Theresa May has defended free market capitalism in a speech marking 20 years since the Bank of England was given the right to set interest rates. She said Britons should never forget the value of a free market economy.
Any increases in UK interest rates in the coming months will be “gradual” and “limited”, the Bank of England governor Mark Carney has said, but “some withdrawal of monetary stimulus is likely to be appropriate over the coming months” to help return inflation to its 2% target.
The governor of the Bank of England has warned that uncertainty over Brexit is already weighing on the economy. Mark Carney's comments came as the Bank voted to hold rates and cut growth forecasts. It edged this year's growth forecast down to 1.7% from its previous forecast of 1.9% made in May and also cut the forecast for 2018 from 1.7% to 1.6%.
A three-day strike by Bank of England support staff will go ahead after talks at the conciliation service Acas ended without agreement, the Unite union said. Employees are unhappy about a below inflation pay rise of 1% and protestors are planning to gather outside the Bank of England building wearing masks of Governor Mark Carney.
The Bank of England has asked City financial firms in London to submit Brexit contingency plans, with Governor Mark Carney warning of major economic harm if negotiations between Britain and the EU falter.
The Bank of England (BOE) held interest rates at the record low level of 0.25% and maintained asset purchases at £435 billion on Thursday. The decision, which was made by an 8-1 majority, had been almost unanimously anticipated by central bank watchers with many expecting the BOE to choose caution until more clarity emerges on the Brexit process and the U.K. economy's capacity to manage outside of the European Union.
The Bank of England revised up its economic growth forecasts for the British economy for the coming three years, crediting much of the improvement to the government’s decision to ease up on austerity in the wake of the country’s vote to leave the European Union.
The Bank of England has raised its near-term growth and inflation forecasts on Thursday following the slide in sterling seen since the U.K.'s decision to leave the European Union. The bank decided Thursday to keep interest rates at the record low level of 0.25% and maintan its quantitative easing (QE) purchase targets at up to £10 billion for corporate bonds and £435 billion for U.K. government bonds.